Fiscal gap till January shrinks

The Indian central government's fiscal deficit reached 50.7% of the annual target in the first eight months of this fiscal year, compared to 58.9% a year before. The deficit dropped below the level a year earlier, reaching ₹9.07 lakh crore between April and November. The fiscal gap narrowed to ₹1.03 lakh crore in November, thanks to lower tax devolution to states, a contraction in revenue spending, and only a marginal increase in capital expenditure.

In the first half of the fiscal year, the fiscal deficit of the Indian government has reached 39.3% of the annual target, compared to 37.3% during the same period in the previous year, according to official data released on Tuesday. However, the fiscal deficit has been kept under control after experiencing an initial spike until July.

FY24 fiscal deficit likely to come in at 6% versus target of 5.9%

In absolute terms, the fiscal deficit touched Rs 6.43 lakh crore between April and August, compared with Rs 5.42 lakh crore a year earlier. Until July, the Centres fiscal deficit had touched 33.9% of the annual target, sharply higher than 20.5% a year earlier.

India's fiscal deficit for the first three quarters of the fiscal year reached 55% of the annual target, down from 58.9% the previous year. The fiscal gap until December 2023 stood at ₹9.82 lakh crore, compared to ₹9.92 lakh crore a year earlier. The government maintained control over revenue spending, which eased for the fourth consecutive month in December. Capital spending, however, increased by 37.5% to ₹6.74 lakh crore until December, representing 67.3% of the annual target. The fiscal gap in December alone widened to ₹75,694 crore, more than five times the November level.

“If spending remains muted in the current quarter, the deficit may end up at 5.8% of GDP,” the global investment bank said, noting that receipts upside of 0.2% will help meet this years target and that the government will follow the path of fiscal consolidation.

India Business News: NEW DELHI: The third quarter Gross Domestic Product (GDP) of FY 24 was at 8.

India's fiscal deficit for the last financial year ending March 31 met New Delhi's target and narrowed to 6.4% from the previous year, thanks to strong tax receipts and lower payments. The government expects the deficit to further reduce to 5.9% next year and aims to bring it under 4.5% of GDP by 2025-26.

India's fiscal deficit for April-February of FY24 reached Rs 15.01 lakh crore, constituting 86.5% of the annual target. This figure compares to Rs 14.53 lakh crore during the same period last year

India's fiscal deficit in the first seven months of the FY ending in March 2024 was $96.86 billion, or 45% of the estimate for the whole year, according to official data.